Index Archive

12 October 2016

Government amends law now can fix retail prices of commodities Today anyone can witness and see that nothing happens but the prices of commodities keep rising and nobody knows the real reason of price hike.

In truth real reason is sellers anticipate the demand and just hike the prices of commodities to earn more profits.

Currently in India retail prices are fixed by market forces, leaving very little room for the government to check undue spike in prices.

In past we saw that Ex. PM Manmohan Singh government failed to control price hike and same happened with Modi government both failed to stop the price hike.

Now Government of India has amended the metrology rules which would allow it to fix retail prices of essential commodities like pulses and sugar in extra-ordinary situations.

Government notified amendments to the Legal Metrology (Packaged Commodities) Rules, 2011, to include a provision to fix retail price of any essential commodity

The notification says that "if retail sale price of any essential commodity is fixed and notified by the competent authority under the Essential Commodities Act, 1955, the same shall apply,"

This rule will apply to essential commodities that are sold both in loose and packaged form in retail markets.

Because of above notification and change of law now on if government realizes that sellers are making undue profits, are taking higher profits in such situation government will step in and it will fix the price of that commodity.